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01 / 05
Dead Wrong: The Delusion of Wage Stagnation

Video | Personal Income

Dead Wrong: The Delusion of Wage Stagnation

If there’s anything the populist Right and the socialist Left agrees on, it’s that workers have been getting a raw deal. Wages used to rise in line with productivity, but since the 1970s they have been nailed to the factory floor. Dead Wrong.

Bloomberg | Labor Productivity

Chick-Fil-A’s Lemon-Squeezing Robots Save 10,000 Hours of Work

“In a plant north of Los Angeles, machines now squeeze as many as 1.6 million pounds of the fruit with hardly any human help. The facility, larger than the average Costco store at roughly 190,000 square feet, then ships bags of juice to Chick-fil-A locations, where workers add water and sugar to whip up the chain’s trademark lemonade.

The automated plant frees up in-store staff to serve customers faster, according to the company. Squeezing lemons was a tedious task that added up to 10,000 hours of work a day across all locations and resulted in many injured fingers.”

From Bloomberg.

Wall Street Journal | Labor Productivity

The American Worker Is Becoming More Productive

“Productivity in the U.S., as measured by how much the average worker gets done in an hour, has been on the rise. That matters because the faster that productivity grows, the faster the economy can grow as well. The success of the U.S. economy, and why it has grown so much compared with other countries over the past century and more, has hinged on its productivity. 

Productivity—the total output of the economy divided by hours worked—rose 2% in the third quarter compared with a year earlier, according to the Labor Department. That marked the fifth quarter in a row with an increase of 2% or better. In the five years before the pandemic, there were only two such quarters.

The gains in part reflect massive changes in the U.S. economy since the onset of Covid-19. Companies learned new ways of doing things and adopted new technologies, while an upheaval in the labor market moved workers into more productive jobs.

Another big change in the American labor force—a massive influx of immigration—might also have played a role. Immigrants are often slotted into manual-intensive jobs, which could allow other workers to move up to more highly skilled jobs.”

From The Wall Street Journal.

National Bureau of Economic Research | Labor Productivity

Robots and Labor in Nursing Homes

“How do employment, tasks, and productivity change with robot adoption? Unlike manufacturing, little is known about these issues in the service sector, where robot adoption is expanding. As a first step towards filling this gap, we study Japanese nursing homes using original facility-level panel data that includes the different robots used and the tasks performed. We find that robot adoption is accompanied by an increase in employment and retention and the relationship is strongest for non-regular care workers and monitoring robots. The share of specific tasks performed by robots increases with the adoption of the respective type of robot, leading to reallocation of care worker effort to ‘human touch’ tasks that support quality care. Robots are associated with improved quality (reduction in restraint use and pressure ulcers) and productivity.”

From National Bureau of Economic Research.

New Atlas | Science & Technology

Incredible Generalist Robots Show Us a Future Free of Chores

“Emerging startup Physical Intelligence has no interest in building robots. Instead, the team has something better in mind: powering the hardware with the continuously learning generalist ‘brains’ of AI software, so existing machines will be able to autonomously carry out a growing amount of tasks that require precise movements and dexterity – including housework.”

From New Atlas.